Last close As at 05/08/2026
EUR15.00
— 0.00 (0.00%)
Market capitalisation
EUR709m
Research: TMT
Tinexta’s new venture with a subsidiary of Intesa Sanpaolo (IS), a leading bank in Italy, will enable it to distribute its own services that help SMEs to fund, market and grow their businesses through a more significant network with existing strong relationships. We upgrade our FY22 PBT forecast by 2% and the rapid build in revenue and profitability of the new venture through FY25, post our explicit forecast period, leads to an increase in our DCF-based valuation to €36.4 per share.
Tinexta |
Expanding distribution of services |
New venture announcement |
Professional services |
25 June 2021 |
Share price performance
Business description
Next events
Analysts
Tinexta is a research client of Edison Investment Research Limited |
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Tinexta’s new venture with a subsidiary of Intesa Sanpaolo (IS), a leading bank in Italy, will enable it to distribute its own services that help SMEs to fund, market and grow their businesses through a more significant network with existing strong relationships. We upgrade our FY22 PBT forecast by 2% and the rapid build in revenue and profitability of the new venture through FY25, post our explicit forecast period, leads to an increase in our DCF-based valuation to €36.4 per share.
Year end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/19 |
258.7 |
53.5 |
0.80 |
0.00 |
41.0 |
N/A |
12/20 |
269.0 |
58.6 |
0.85 |
0.26 |
38.5 |
0.8 |
12/21e |
370.2 |
73.5 |
1.11 |
0.33 |
29.5 |
1.0 |
12/22e |
417.8 |
88.7 |
1.33 |
0.41 |
24.6 |
1.2 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Partnering with leading bank
IS is contributing 100% of Intesa Sanpaolo Forvalue (ISF) to Tinexta’s Innolva in the Credit Information and Management (CIM) business unit in return for an initial 25% stake in the enlarged Innolva. There is an earn-out to increase the holding to 30% after 2025 and a put and call option on the initial holding to protect each party in the event of the venture ending. ISF has a network of over 90 agents who visit SMEs to offer non-financial services such as consulting on business projections and project appraisals. Tinexta will benefit from offering Innolva’s services (support in obtaining access to funding) and those of its Innovation and Marketing Services (IMS) business unit (consulting to grow businesses internationally and digital marketing) through the expanded network, which serves c 150k SMEs.
Meaningful contribution by FY25
Tinexta estimates the new venture will create incremental revenue of €55–60m by FY25 across CIM and IMS. We estimate an EBITDA margin of 36–37%, therefore it is expected to contribute at least c €20m of EBITDA by FY25, with minorities deducted on only the incremental CIM profit (40% of incremental EBITDA). These compare to our prior FY22 revenue and EBITDA forecasts of €412m and €111m, so represent a meaningful increase to financials in the medium term with a margin that is higher than the group average (29% in FY20). We assume a gradual build in Tinexta’s financials after the July 2021 transaction completion, with no benefit in FY21, and the addition of €6m to revenue and €2m to EBITDA in FY22.
Valuation: DCF-based valuation of €36.4/share
The enhanced revenue growth and addition of higher-margin EBITDA of €20m by FY25 from the new venture, and higher underlying revenue growth forecasts for FY24-FY25 than our previous quick fade after FY23, leads to an increase in our DCF-based valuation to €36.4 per share from €27 per share. The P/E multiples for FY21 and FY22 of 29.5x and 24.6x are a premium to historic multiples, reflecting expected higher growth post the forecast period, notably from this venture.
Exhibit 1: Financial summary
€m |
2016 |
2017 |
2018 |
2019 |
2020 |
2021e |
2022e |
||
31-December |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
IFRS |
||
INCOME STATEMENT |
|||||||||
Revenue |
|
|
146.9 |
174.8 |
238.7 |
258.7 |
269.0 |
370.2 |
417.8 |
Operating costs |
(135.9) |
(172.1) |
(181.9) |
(187.8) |
(274.0) |
(305.2) |
|||
EBITDA before non-recurring costs |
|
|
30.2 |
38.9 |
66.6 |
76.8 |
81.2 |
96.2 |
112.6 |
EBITDA |
|
|
29.3 |
40.6 |
66.0 |
71.3 |
77.9 |
96.2 |
112.6 |
Normalised operating profit |
|
|
23.5 |
29.9 |
54.3 |
59.0 |
62.2 |
75.5 |
90.7 |
Amortisation of acquired intangibles |
(5.1) |
(4.6) |
(5.8) |
(5.9) |
(6.0) |
(6.0) |
(6.0) |
||
Exceptionals |
(1.0) |
1.8 |
(0.6) |
(5.5) |
(3.3) |
0.0 |
0.0 |
||
Share-based payments |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Reported operating profit |
17.4 |
27.1 |
47.9 |
47.5 |
52.9 |
69.5 |
84.7 |
||
Net Interest |
(1.0) |
1.5 |
(2.5) |
(4.1) |
0.6 |
(2.0) |
(2.0) |
||
Joint ventures & associates (post tax) |
0.0 |
0.0 |
0.1 |
(1.1) |
(1.0) |
0.0 |
0.0 |
||
Exceptionals |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Profit Before Tax (norm) |
|
|
22.5 |
30.7 |
51.8 |
53.5 |
58.6 |
73.5 |
88.7 |
Profit Before Tax (reported) |
|
|
16.4 |
28.6 |
45.5 |
42.2 |
52.5 |
67.5 |
82.7 |
Reported tax |
(4.8) |
(8.4) |
(12.6) |
(13.4) |
(14.6) |
(19.9) |
(24.4) |
||
Profit After Tax (norm) |
15.9 |
21.6 |
36.8 |
38.3 |
40.6 |
51.8 |
62.5 |
||
Profit After Tax (reported) |
11.6 |
20.2 |
32.9 |
28.8 |
37.9 |
47.6 |
58.3 |
||
Minority interests |
(0.1) |
(0.1) |
(0.6) |
(0.6) |
(0.6) |
(0.8) |
(1.2) |
||
Discontinued operations |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Net income (normalised) |
15.9 |
21.6 |
36.2 |
37.7 |
39.9 |
51.0 |
61.3 |
||
Net income (reported) |
11.6 |
20.1 |
32.4 |
28.2 |
37.3 |
46.8 |
57.1 |
||
Average number of shares outstanding (m) |
37.5 |
46.6 |
46.8 |
47.3 |
46.7 |
46.1 |
46.1 |
||
EPS - normalised (c) |
|
|
42.3 |
46.5 |
77.6 |
80.3 |
85.4 |
110.6 |
132.9 |
EPS - normalised fully diluted (€) |
|
|
0.42 |
0.46 |
0.77 |
0.80 |
0.85 |
1.11 |
1.33 |
EPS - basic reported (€) |
|
|
0.31 |
0.43 |
0.69 |
0.60 |
0.80 |
1.01 |
1.24 |
Dividend (€) |
0.09 |
0.14 |
0.23 |
0.00 |
0.26 |
0.33 |
0.41 |
||
Revenue growth (%) |
18.3 |
19.0 |
36.6 |
8.4 |
4.0 |
37.6 |
12.8 |
||
EBITDA Margin before non-recurring costs (%) |
20.6 |
22.2 |
27.9 |
29.7 |
30.2 |
26.0 |
27.0 |
||
Normalised Operating Margin |
16.0 |
17.1 |
22.8 |
22.8 |
23.1 |
20.4 |
21.7 |
||
BALANCE SHEET |
|||||||||
Fixed Assets |
|
|
216.4 |
275.8 |
307.1 |
316.7 |
325.8 |
436.0 |
436.3 |
Intangible Assets |
200.7 |
260.6 |
272.1 |
269.9 |
285.1 |
398.3 |
400.5 |
||
Tangible Assets |
7.1 |
8.3 |
8.2 |
21.2 |
19.0 |
16.0 |
14.1 |
||
Investments & other |
8.6 |
6.9 |
26.8 |
25.6 |
21.7 |
21.7 |
21.7 |
||
Current Assets |
|
|
122.6 |
125.8 |
143.4 |
139.4 |
196.1 |
145.9 |
186.2 |
Stocks |
1.0 |
2.1 |
1.3 |
1.1 |
1.2 |
1.2 |
1.2 |
||
Debtors |
50.9 |
80.3 |
86.3 |
89.8 |
84.1 |
115.8 |
130.6 |
||
Cash & cash equivalents |
60.4 |
37.0 |
35.1 |
33.6 |
92.8 |
10.9 |
36.4 |
||
Other financial assets |
6.4 |
4.3 |
8.2 |
6.6 |
7.3 |
7.3 |
7.3 |
||
Other |
3.9 |
2.2 |
12.4 |
8.2 |
10.7 |
10.7 |
10.7 |
||
Current Liabilities |
|
|
(89.8) |
(102.9) |
(194.4) |
(160.4) |
(154.9) |
(177.6) |
(188.2) |
Creditors |
(33.2) |
(47.7) |
(93.9) |
(92.7) |
(106.7) |
(129.3) |
(140.0) |
||
Tax and social security |
(1.5) |
(6.1) |
(0.7) |
(2.9) |
(5.1) |
(5.1) |
(5.1) |
||
Short term borrowings |
(36.9) |
(21.7) |
(97.4) |
(62.0) |
(40.4) |
(40.4) |
(40.4) |
||
Other |
(18.2) |
(27.3) |
(2.4) |
(2.9) |
(2.7) |
(2.7) |
(2.7) |
||
Long Term Liabilities |
|
|
(119.2) |
(155.5) |
(110.8) |
(146.2) |
(193.2) |
(203.2) |
(198.2) |
Long term borrowings |
(100.8) |
(123.8) |
(70.7) |
(107.0) |
(150.5) |
(160.5) |
(155.5) |
||
Other long term liabilities |
(10.2) |
(17.5) |
(18.2) |
(15.8) |
(14.3) |
(14.3) |
(14.3) |
||
Net Assets |
|
|
129.9 |
143.2 |
145.4 |
149.4 |
173.9 |
201.2 |
236.1 |
Minority interests |
(0.2) |
(0.5) |
(3.8) |
(3.9) |
(4.0) |
(4.8) |
(6.0) |
||
Shareholders' equity |
|
|
129.7 |
142.7 |
141.6 |
145.6 |
169.8 |
196.4 |
230.1 |
CASH FLOW |
|||||||||
Operating cash flow |
|
|
20.0 |
32.2 |
43.4 |
55.2 |
81.6 |
61.3 |
78.0 |
Capex and intangibles |
(5.7) |
(6.5) |
(13.1) |
(13.5) |
(14.9) |
(18.0) |
(22.2) |
||
Acquisitions/disposals |
(37.0) |
(61.1) |
(33.2) |
(47.5) |
(36.1) |
(113.0) |
0.0 |
||
Net interest |
(1.0) |
(1.5) |
(1.4) |
(2.5) |
(1.9) |
(2.0) |
(2.0) |
||
Equity financing |
48.2 |
1.1 |
1.1 |
1.1 |
(10.0) |
(8.0) |
(8.0) |
||
Dividends |
(3.8) |
(7.0) |
(12.1) |
(16.4) |
(2.2) |
(12.2) |
(15.3) |
||
Borrowings |
19.4 |
15.2 |
17.3 |
23.7 |
35.4 |
10.0 |
(5.0) |
||
Other |
1.1 |
4.2 |
(3.9) |
(1.7) |
7.3 |
0.0 |
0.0 |
||
Net Cash Flow |
41.1 |
(23.4) |
(1.9) |
(1.5) |
59.2 |
(81.9) |
25.5 |
||
Opening net debt/(cash) |
|
|
48.5 |
71.2 |
104.4 |
124.9 |
129.1 |
91.9 |
182.5 |
FX |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
||
Other non-cash movements |
(63.8) |
(9.7) |
(18.7) |
(2.7) |
(22.0) |
(8.8) |
5.0 |
||
Closing net debt/(cash) |
|
|
71.2 |
104.4 |
124.9 |
129.1 |
91.9 |
182.5 |
152.1 |
Source: Tinexta, Edison Investment Research
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